Is it profitable to convert a Single Family home into a Duplex?

[Daniel Hornsby]

Good day BPers!

I just got a call from a potential seller who wants to sell a home he owns that he is converting into a duplex. Specs are as follows:

-1,876 sqft (we'll say split equally between both units)
-4 bed 2bath total (2 bed 1 bath upper and lower unit)
- 3/4 acre lot
-24'x24' pole barn on property (possible 2 car garage)
-Partially rehabbed at this time - incomplete kitchen in one of the units, needs new carpets and such.

He is looking to sell after he is done in a few months but is willing to sell "for the right price" in the middle of his rehab. (Tire kicking...)

The specific area the property is in is a little more country-ish so not too many duplexes around.

According to several online sites like zillow, trulia, realtor.com, homes.com, etc. the average price of the home, in its Single Family state, is between 55k-90k but he's asking for 180k-190k after he's done or 150k-160k with rehab work still to be done. I know most online sites are usually wrong with their estimates/comps but in this case they arent that far off for the area.

My questions are as follows: Does adding a second unit to a SF add that much value? I know it largely depends on the market but in terms of Duplexes is he right to ask that much in difference? How would I comp it out, as a SF or as a Duplex/Multifam? Should I bother calling him back? LOL!

Thanks in advance!

P.S. I dug around a little and found he only paid $40,900 for the property. Not sure if that should matter but I find it to be a flag, not a RED flag but maybe a YELLOW flag lol.